Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
The latest announcement is out from IGas Energy ( (GB:STAR) ).
Star Energy Group has agreed to sell its Croatian geothermal subsidiary IGeoPen, which holds three exploration licences, to Enna Geo for an initial cash consideration of €1.5 million plus an earn-out of up to €1.5 million tied to future power plant developments. The business being sold is loss-making and carries net liabilities, and the deal will also release €5.2 million of restricted cash and remove future capital commitments linked to the Croatian assets.
The company said the disposal reflects delayed tariff support for geothermal projects in Croatia and is intended to refocus capital and management attention on its core UK oil and gas and geothermal activities. Proceeds will help strengthen the balance sheet, enhance financial flexibility, partly repay or recycle debt-linked funding into UK geothermal assets, and support a strategy centred on improving existing UK production, pursuing acquisitions to utilise UK tax losses, and maintaining a low-cost UK geothermal option while lobbying for supportive energy policy.
Spark’s Take on STAR Stock
According to Spark, TipRanks’ AI Analyst, STAR is a Neutral.
The overall stock score is primarily influenced by significant financial challenges, including declining revenues and profitability, which weigh heavily on the score. However, positive technical indicators and a strategic corporate event provide some support. The valuation remains a concern due to the negative P/E ratio and lack of dividend yield.
To see Spark’s full report on STAR stock, click here.
More about IGas Energy
Star Energy Group is a UK-based energy company focused on onshore oil and gas production and geothermal development. Listed on AIM under the ticker STAR, the group operates a portfolio of UK oil and gas assets while maintaining a capital-efficient geothermal platform, and seeks to leverage substantial UK tax losses through both organic improvements and inorganic growth opportunities.
Average Trading Volume: 332,931
Technical Sentiment Signal: Hold
Current Market Cap: £20.85M
Learn more about STAR stock on TipRanks’ Stock Analysis page.